How many funds will beat the market in every year

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Reference no: EM131220800

Recall that U.S. mutual fund companies offer about 8000 separate funds. Suppose each fund has a 50-percent chance of beating the S&P 500 each year.

a. Over a 5-year period, how many funds will beat the market in every year? How about a 15-year period?

b. Based on the performance of William Miller's mutual fund from 1981 through 2005, would you say Miller is a genius? Explain.

Reference no: EM131220800

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